Spec’s Family Partners, Ltd. v. The Hanover Insurance Co.
The court found that, although the insured filed suit agianst a third party, it did so in resistance of the third party's claims against the insured and, therefore, it was defensive in nature. Thus, a duty to defend was owed, but the insured did not establish that the insurer had paid less than was owed, so no breach of the policy was established.
liability insurance policy, claim, defense funding agreement, duty to defend, eight corners rule, defensive litigation, contract exclusion, Texas Insurance Code, Chapter 542, CPRC 38.001, attorneys' fees, prejudgment interest
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